Entertainment mogul: Starting his business with the internet

Chapter 369 Changes in the Tang People

On November 2nd, filming for the TV series "Xuan-Yuan Sword" wrapped up at Xiangshan Film and Television City.

On November 5th, Tangren Media held an important meeting.

On a late autumn morning, Hu Ge entered the conference room and was surprised to find Liu Shishi already sitting there, wearing a fitted gray trench coat, looking down intently at her phone, her brows furrowed, revealing a hint of worry.

"Shishi, you're here so early?"

Hearing the voice, the eldest sister looked up, her brows still furrowed with worry: "You're here, Lao Hu."

Hu Ge sat down next to the top sister and asked with concern, "What's wrong? You look so worried?"

With a bitter face, Liu Shishi sighed and said, "Two former employees of the Gucci Pengcheng flagship store revealed that the store abused its employees with harsh rules."

Drinking water requires application, using the restroom requires reporting, and pregnant women stand for over ten hours at a time... The Gucci flagship store in Pengcheng is being called a sweatshop. This incident has already gone viral online, with extremely negative consequences.

Hu Ge was speechless for a moment, not knowing how to comfort the eldest sister. After all, as the spokesperson for Gucci, although this matter was not directly related to her, she was inevitably affected.

“An international brand like Gucci must have a mature and comprehensive crisis communication mechanism. I believe Gucci will handle this matter properly.”

"I hope so." Liu Shishi forced a smile. She had a feeling that things wouldn't be that simple, but it wasn't her place to worry about it, so she changed the subject and stopped worrying about it for the time being.

"Having finished filming 'Xuan-Yuan Sword,' are you planning to take on a new role, Lao Hu?"

"No! I won't be taking on any acting roles recently. I need to focus on setting up my studio, and building a team will take time."

Hu Ge looked radiant as Cai Yinong fulfilled his promise and supported him in establishing his own film and television culture studio, which brought him to a new level in his career, giving him a lot of motivation.

“That will definitely keep us busy for a while.” Liu Shishi nodded knowingly. In the Internet age, top-tier celebrity teams in the entertainment industry need all kinds of professional talents, and they need to be carefully selected.

"And you, what are your plans next?" Hu Ge asked with envy. Liu Shishi was receiving so many scripts that she could pick and choose from almost any film and television resource in the entertainment industry. She was the most resourceful person in the entertainment industry.

"I promised Sister Chen Hong that I would play a supporting role in Director Chen Kai's new movie. After that, I will be promoting Director Ma's 'Goodbye Mr. Loser,' and the new movie will probably not be released until after the New Year."

As they were talking, Cai Yinong, beaming with excitement, entered the meeting room with a thick stack of documents in his hands: "Shishi, Hu Ge, you're here really early."

"Sister K!" "Good morning."

As soon as Cai Yinong sat down in the main seat, he couldn't wait to announce: "Shishi, I have some amazing news! I've landed two top-tier endorsement deals!"

Liu Shishi's beautiful eyes sparkled as she looked expectantly at Sister K.

Cai Yinong pulled out a document from the thick stack of materials: "The first one is about the Omega watch endorsement. They directly gave him the highest title, global ambassador, with an endorsement fee of 800 million per year, in US dollars!"

Liu Shishi paused slightly, took the contract and flipped through it: "I remember that Zhang Ziyi has always been the global spokesperson for Omega watches, right?"

Cai Yi-nong explained, "Yes. However, she has been affected by the fraudulent donation and ink-splashing incidents in the past two years, and has been constantly in the news for negative reasons."

The brand was very dissatisfied with her and decided not to renew her contract in 2012. Omega contacted us proactively, recognizing your popularity in China, and invited you to become their global brand ambassador.

Upon receiving a high-end luxury endorsement deal, Liu Shishi didn't appear overly excited. She knew perfectly well that this endorsement was likely given to her by CEO Nick Hayek out of consideration for her husband.

The same applies to Omega and Gucci. Although she is currently a high-profile figure, she is still a bit short of being able to independently become a global ambassador for a high-end luxury brand.

Seeing Liu Shishi's calm expression, Hu Ge and Cai Yinong couldn't help but sigh. The top star now exudes an air of nobility, remaining composed even when faced with an endorsement contract worth tens of millions. This composure is truly extraordinary.

"What's the other endorsement deal?" the top female star asked softly.

"This will absolutely surprise you!" Cai Yinong smiled mysteriously, keeping them in suspense until they were both intrigued before revealing the answer with delight: "It's an endorsement for Porsche!"

Liu Shishi's cherry-like lips parted slightly, speechless with shock. She never expected it to be a car endorsement contract.

It is important to know that in the field of commercial endorsements, car endorsements are often regarded as the "most valuable" type of endorsement due to their unique industry attributes and market logic.

Moreover, Porsche is a luxury car brand, which can be described as the "pinnacle" of the endorsement industry.

Cai Yinong beamed: "Your photo with the Porsche prototype on the red carpet at the Bazaar Charity Night was outstanding. It was shared and downloaded over a million times on Weibo, contributing greatly to the brand's publicity."

Therefore, Porsche has decided to change its previous strategy of only using car models as brand ambassadors and has invited you to become Porsche's first brand ambassador in Greater China.

"How much did Porsche pay Shishi for her endorsement?" Hu Ge couldn't help but ask curiously. Those in the industry know that, due to their status as high-value commodities and the depth of brand strategy involved, endorsement fees for automobiles are far higher than those for fast-moving consumer goods.

"Because Shishi is only a spokesperson for the Greater China region, Porsche offered her 1500 million yuan a year."

Hu Ge did a quick calculation in her mind and secretly marveled at the top star's earning power. These two endorsements alone brought in over 7000 million yuan a year. Even after deducting taxes and the agency's share, she could still net more than 4000 million yuan.

Add in film and television fees, other endorsement and advertising revenue, and income from commercial activities, earning over 100 million yuan a year is an easy feat, almost equivalent to the profits of a small to medium-sized listed company, which is truly admirable.

Liu Shishi nodded slightly, thinking that the Porsche CEO and her husband had no connection whatsoever, so this endorsement must be for her commercial value.

Although she may not be as famous as some of the top actresses, she is among the most popular in the entertainment industry, so her endorsement deals are definitely more effective than those of ordinary car models.

"This is a contract with Porsche."

The woman took the contract and carefully read it through. When she saw a certain additional clause, she couldn't help but smile: "The contract says that the latest car model will be given to Mr. Song and me every year. This is a really clever scheme. She's obviously trying to ride on my husband's popularity."

Hu Ge smiled and agreed, "That's for sure. If Chairman Song is willing to drive a Porsche, it would probably encourage many wealthy people to follow suit and buy one. Especially his female fans, they would likely contribute a lot to sales."

Upon hearing this, Liu Shishi immediately turned her head and glared at Lao Hu: "Trying to get a Porsche for free? Dream on!"

Hu Ge couldn't help but chuckle. The top star was really possessive of her food, even jealous of Boss Song's fans.

“If there are no problems with the contracts, I will accept both endorsement deals.” Cai Yinong nodded: “The legal department has already reviewed them, and they are all standard endorsement terms. Since you agree to accept them, I will inform the brands to prepare for the signing ceremony. You also need to make time to arrange your schedule to shoot the New Year’s advertisement for them.”

Inside the meeting room, the three were chatting about the phenomenon of skyrocketing salaries and endorsement fees in the entertainment industry over the past two years.

At this moment, Gulnazar skipped and hopped into the meeting room full of energy. Although she has not yet released any works, she has already gained many fans with her exquisite face.

After politely greeting the three of them, the little girl obediently sat down next to Hu Ge.

"Nazar!"

"I'm with Sister K."

Cai Yinong looked at the promising successor to Tangren's top female star and said meaningfully, "I heard that many boys at the Beijing Film Academy are pursuing you? Young people should focus on their careers."

Your fanbase is almost entirely male, so don't start dating too early, or it will be very detrimental to your career.

Gulinaza quickly stated, "Don't worry, Sister K, I have no plans to date right now."

After offering a few words of advice, Cai Yinong said no more and waited patiently for the others to arrive.

Soon after, signed artists Yuan Hong, Jiang Jinfu, and others arrived. Production director Li Guoli followed closely behind, bringing directors Liang Shengquan, Wu Jinyuan, and Lin Yufen into the conference room.

Then, several core creative team members, including Tangren's chief stylist Chen Gufang, gold medal costume designer Song Xiaotao, and art director He Jiansheng, also arrived and took their seats.

"Everyone's here, let's start the meeting." Cai Yinong sat in the main seat, looking around at the elite team in front of him, full of confidence and optimism for the future of Tangren Media.

All eyes were on Cai Yinong, wondering what good news she had to announce by gathering everyone together in such a grand manner.

"I've called everyone here for a meeting today mainly to discuss two things," Cai Yinong said, getting straight to the point. "First, starting next year, Hu Ge will establish his own studio, and the company will allocate some personnel to build a dedicated team for him."

The news that Hu Ge, the top star, was going to set up his own studio did not surprise anyone present; rumors had been circulating within Tangren Media for some time. Given Hu Ge's current status, he is fully qualified to establish his own studio.

Nowadays, most film and television companies in the entertainment industry invest in setting up studios for their leading stars in order to avoid losing top artists.

In newly established celebrity studios, the film and television company typically holds 30% of the shares, the artist effectively holds 55%, and the remaining 15% is usually awarded to the management team. Both parties sign a "Concerted Action Agreement" to ensure that major decisions require the approval of the film and television company.

Of course, there are exceptions. For example, Liu Shishi, the top female star of Tangren Media, has her studio 100% owned by her personally. Her agency contract is affiliated with Tangren Media, and the company symbolically takes a 10% cut. Her agency team enjoys a small amount of profit sharing, but cannot interfere with Liu Shishi's decisions.

In short, the dynamic balance between an artist's autonomy and a film and television company's control depends on the star's commercial value. The stronger their earning power, the greater their influence.

Seeing that everyone looked understanding, Cai Yinong continued, "Anyone interested in joining Hu Ge's team can apply. After he agrees, their personnel records will be transferred to the studio. Although we will still be family, our future development will be closely related to Hu Ge."

A top-tier celebrity's studio typically consists of agents and executive agents as core management roles, along with a publicity and public relations team, a business and legal team, an image and content creation team, and a daily support team, totaling at least ten people.

As soon as she finished speaking, everyone's eyes fell on Lin Yufen, because she was the one who chose to join Liu Shishi's studio, so strictly speaking, she should be Liu Shishi's contracted director.

After a brief pause, Cai Yinong took a deep breath and gazed at the core members of Li Guoli's behind-the-scenes team.

"You are all veterans of Tangren, and your contributions to the company's success today are indispensable. After discussing with Director Li and Shishi, we have decided to allocate 8.5% of the shares for equity incentives."

Liang Shengquan, Wu Jinyuan, and the others exchanged glances, their faces beaming with joy. Previously, other film and television companies had offered them high salaries, but Li Guoli had consistently and earnestly dissuaded them.

With Liu Shishi's involvement, Tangren Media has indeed flourished and has a bright future, heading straight for an IPO. So we've been patiently waiting for Cai Yinong to make a move, and today we've finally seen a reward.

"Director Liang and Director Wu will each receive 2% of Tangren's shares, and Teacher Chen and the other two will receive 1.5%, totaling 8.5% of the shares, which will be transferred free of charge by the major shareholder."

The five veterans who received incentive shares were overjoyed. Tangren Media is currently valued at around 3 million yuan, which means they received several million yuan in direct benefits. Moreover, as Tangren develops, the value of these shares continues to grow.

However, the group also understood that Cai Yi-nong was doing this to retain talent, and there must be additional terms. But all film and television companies are the same: if you want to get paid, you have to work.

Li Guoli looked at his longtime partners with satisfaction, finally able to give them an explanation.

After the meeting room quieted down a bit, Cai Yinong continued, "In addition, I will personally gift Hu Ge another 1.5% of the shares."

Hu Ge looked surprised: "Sister K, you've taken such good care of me, especially after that car accident back then..."

Cai Yinong waved his hand: "These are two different things. It's now common practice in the industry for top artists to receive company incentive stock."

The 2% stake you hold was acquired during the company's crisis and is unrelated to the company's incentive policies. Of course, this 1.5% stake isn't free either; the company will set profit targets for you.

Seeing this, Hu Ge said no more, but she was still somewhat moved.

Cai Yinong then looked at the group of artists on his right. In addition to the two mainstays, the top male and female stars, Tangren Media also has seven other signed artists: Yuan Hong, Li Chengyuan, Jin Chen, Gulinaza, Jiang Jinfu, Lin Gengxin, and Guo Xiaoting.

"You don't need to envy Hu Ge. As long as you are high enough and achieve certain profit targets, the company will also set up studios for you and provide equity incentives."

With this, Tangren Media's shareholding structure has changed as follows:
Cai Yi-nong: 46%

Liu Shishi: 20%

Li Guoli: 19%

Hu Ge: 3.5%
Veteran Team: 8.5%
Employee stock ownership plan (subscription by internal investors): 3%

As the founder and largest shareholder of Tangren Media, Cai Yinong has the right to manage the company's daily operations and the right to veto important matters, and still firmly controls Tangren Media.

After announcing the two major events, Cai Yinong looked relieved and encouraged everyone, saying, "The film and television industry has been booming in recent years. I hope everyone will work together to lead the company to go public within five years!"

After the Tangren Conference concluded, Liu Shishi and Cai Yinong moved to a small meeting room next door to hold a closed-door meeting with their team members to review the studio's resources and take stock of their assets.

(End of this chapter)